E-mini S&P 500 Futures Outlook Video – Jan 29, 2013

In this video, we share our E-mini S&P 500 Futures outlook for the next 2-3 days. The video goes over our directional bias and highlights the specific Key Support / Resistance Areas that we’ll be looking to trade. The market has been heading higher for 8 days now and is near the Key 1500 Level. We’ll be using 1494.75-1496.75 to establish directional bias (bullish above, bearish below).

Awais,Do you tend to predict the direction of the market like in the next 2 months S&P is going form point A to point B? Are you able to trade individual stocks just the way you trade S&P? If you are not trading Individual stocks is there any reason for that?

http://blog.opentrader.com/ Awais

Hi Kishan, we’re day traders so our focus is on short-term market direction. We’re aware of the bigger picture Context but don’t predict several months out because that information is not needed for our time-frame.

Our trading method could certainly be applied to stocks, or any market for that matter, but we day trade S&P futures for the liquidity and leverage it offers. It’s an excellent market for day trading and due to the leverage, you can get a much higher return on your capital.

-Awais

Mike

Why do you have 87.25 mentioned as target as opposed to that bigger hvn at 90.25?

http://blog.opentrader.com/ Awais

Hi Mike,

1490.25-1491.25 was a potential support area I was watching but since we already got a response ahead of 1490.25 on Monday, another move down to that area would mark the 2nd (or in this morning’s case,3rd) test of that area which makes it a little more risky. Also keep in mind that these videos provide a slightly bigger picture perspective on the market. I provide a daily trade plan with detailed support/resistance zones at http://www.eminiplayer.net

-Awais

J

Good video–I disagree with the 95.50 being used as a bias point though. In a market which has been in balance for 2 days, being bullish above the VPOC and bearish below is opposite of what the market character is saying. It is the point of control, the pivot, and only in a directional market does it provide a use this way. In a balanced/range market like we have had Friday/Monday and currently today, the best trade is the short above the POC, and the buy below (today the easy trades are long 93s, short 97s); not to be biased long above, and biased short below. I have a big area to watch at 95.50 to 96 as well as you do, but the more important areas for actual trade location are the value high and low, as mentioned above, until the market shows that it intends to break out of that balance, in which case a potential retest of the 95.50 might make it good for actual trade location. Thanks for the videos as always, I certainly enjoy watching them, keep up the good work guys!!

http://blog.opentrader.com/ Awais

Hi J,

No problem on disagreeing — that’s exactly what makes a market :)

I think you’re taking a very short-term view of the market though. Your idea would be valid in my book if we were in a mature Balance Area. But in this case, we’re in a developing Balance Area, i.e. it’s still under development and the range hasn’t been put in yet. In this scenario, 1497 is a riskier Short because there’s a high probability of a push above 1500 if ES continued to hold above 1494.75-1496.75. Holding above 1494.75-1496.75 would bring the 1503.50-1505.50 area into play, and that’s what I highlighted as today’s Initial Resistance Zone over at http://www.eminiplayer.net — in a mature balance area, I would interpret it as you outlined in your comment.

Also, as I mentioned to Mike in reply to his comment below, these videos provide a slightly bigger picture view of the market and cover ideas that may play out over the coming 2-3 days.